Abstract Fierce competition in today's global markets, the introduction of products with shorter life cycles, and the heightened expectations of customers have forced business enterprises to focus attention on their supply chains. Supply chain management is a vast area. It has tremendous potential to add value as a strategic function for companies in industries. This paper will discuss supply chain optimization on its role in reducing cost in cement industry. Since 2000, supply chain management has played an operational role within cement and mineral extraction commodity companies. Recently, cost reduction projects have brought supply chain management into the limelight. The level of advancement in cement Supply Chain Management (SCM) can facilitate or constrain world economic development. To analyze the cement supply chain we need to understanding well the nature of cement industry, identifying the most important Inputs and Outputs (starting from Quarry until the End-customer) and utilizing Nowadays-Benchmark tools such as Supply Chain Council's SCOR model processes, Absolute triangle, ABC analysis and Model simulation.
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